Walmart to Support U.S. Manufacturers with $ 350 Billion in Additional Revenue

Walmart said Wednesday that it plans to support U.S. manufacturers by spending an additional $ 350 billion over the next decade on items made, grown or assembled in the United States.

Almost two-thirds of Walmart’s current assortment are made, assembled or grown in the United States, as of the most recent fiscal year, according to a spokesperson for the company.

With the move, the retailer said U.S. products will become an even bigger part of its supply chain. It will focus its efforts on purchasing more materials and goods from domestic manufacturers, including plastics, textiles, pharmaceutical and medical supplies, food processing and small electrical appliances.

As the world’s largest retailer by revenue, Walmart has come under fire from union activists and others for lowering prices in a way that pushes more manufacturing and jobs overseas. The company responded in 2013 by pledging to purchase $ 250 billion worth of US goods by 2023. Wednesday’s announcement represents a step forward from that pledge.

In recent years, Walmart has created new ways for U.S. suppliers to be supported by its stores and website, including an annual Open Call event where small businesses can showcase their products. He also created a website where Walmart suppliers can learn how to bring their operations back to the United States.

However, the company has also come under intense scrutiny. In 2015, it dropped a “Made in USA” logo on the products, after an investigation by the United States Federal Trade Commission and a watchdog group found that the items were not manufactured in the United States. United States. The company now details the percentage of a product made in the United States on its label.

In a post on the company’s website Wednesday, Walmart U.S. CEO John Furner said the effort was good for the environment and the economy. He said it would reduce the company’s carbon footprint by sourcing products closer to customers, create demand for more jobs in the United States, and pave the way for more American entrepreneurs to become Walmart vendors or vendors.

Furner said the spending increase could support more than 750,000 new U.S. jobs, based on a Walmart study with Boston Consulting Group that used data from the Economic Policy Institute and the Bureau of Labor Statistics.

And, he added, the decision meets what customers want. More than 85% of consumers polled by Walmart in 2019 said it was important for the retailer to offer products made or assembled in the United States.

Furner said Walmart will also launch a new program, called American Lighthouses, which will bring together stakeholders in different parts of the country to find ways to overcome barriers to American production. He said attendees will include vendors, government officials, and academic experts who can suggest ways to support and expand American manufacturing.